7th March 2014
The UK’s current account market looks set to heat up alongside the weather this summer when M&S Bank launches its first a fee-free current account writes Philip Scott.
Following earlier announcements of intent from Tesco Bank and Virgin Money to offer current accounts the financial arm of the retailing giant has now set out its own stall.
According to the group M&S Bank customers will receive an automatic £500 overdraft, the first £100 of which is interest-free and the remainder to be charged at 15.9% EAR.
As with the existing M&S Premium Current Accounts, the new account will have no overdraft fees and customers will receive free text alerts as they approach their overdraft limit.
Customers will also earn loyalty points on debit card spend, with one point earned for every £1 spent in M&S, using their M&S debit card.
In addition, new M&S Current Account customers will receive a £100 M&S gift card once they have switched their current account using the Current Account Switch Service.
Colin Kersley, CEO of M&S Bank, says: “We launched M&S Bank in September 2012 on the foundations of M&S Money, which was established 29-years’ ago, to bring the trusted M&S values to banking.
“Our Premium Current Accounts, developed specifically for the regular M&S shopper, have proven popular with this audience and following the launch of the Current Account Switch Service, which has made switching faster and easier, we want to offer the same transparent banking and great service to a broader audience with the launch of the M&S Current Account.”
Commenting on the launch, David Black of Consumer Intelligence, says: “It is a good deal for those who regularly shop at M&S and its competitive overdraft rate coupled with no insistence upon any minimum monthly funding requirement will also serve to broaden its appeal.”
The new M&S Current Account will be available in the summer, starting with existing customers before rolling-out widely.